Professor Elam

Monday Sept 10, 2012

We are studying financial analysis in Acct 3301 and 3314. Please read how Amazon is sucking the profit out of tablets.

Henry's point is that Google and Amazon make their money elsewhere so they can afford to treat their tablets as 'loss leaders.'  They can sell at break even anticipating that tablet useres will buy their other products. Apple however is using hardware sales a a profit business model. 

Again as he points out, increased sales have not led to lower prices. (come to think of it this has not happeend in colleges either)That I expect is about to change but faster for Apple than in Higher Ed. 

Please read this article.